What should I keep inmind when looking for a subprime loan?

If your own situation requires a subprime loan, the Virginia Housing Development Agency suggests following these ten tips.

1. Ask questions.
2. Shop around.
3. Be an educated consumer.
4. Read before you sign.
5. Avoid balloon payments (a loan that starts with small payments at first, then culminates into one or more significantly large payments).
6. Avoid prepayment penalties.
7. Know your rights.
8. Don’t be afraid to say no.
9. Be prepared—build your credit.
10. Be wary of targeted advertising.

Lastly, if you believe you’ve been victimized by predatory-lending practices, contact the Office of Consumer Affairs in your state to report the problem. You can find a state-by-state list of predatory-lending reporting bureaus at the HUD Web site: www.hud.gov/buying/localpredlend.cfm.